guys so they won't get anymore. here was an upset jackson on the strategy. >> i'm an old school basketball player, old school coach. >> if you can't appreciate that, that's on you. we're not going to lay down. going to get the record-- >> right in their face. imus: and the blonds and before that a bernie briefing. i leave my christmas lights on my front porch all year long. ♪ ♪ ♪

♪ ♪ ♪ imus in the morning ♪ >> do not be fooled by the headlines. the economy is in bad shape. tax and spend is a failure. good morning, everyone. the bean counters presented the

report on the economy. and what did the media pick on? the deficit. this year it will be below a trillion dollars, that's what the pundits focused on and ignored the grim reality. in fact, our debt is headed toward the worst levels in post war america. worst, the economy will show a masly 1.4% growth. unemployment rise to 8%, stay at very high levels for years, and 7 million people will lose their health care coverage under obamacare. that came within hours of president obama's call for more tax increases on the rich and put off spending cuts. tax and spend, it lives on and so does our massive debt. reality check, "varney & company" is about to begin. [ shapiro ] at legalzoom, you can take care of virtually

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>> first up this wednesday morning, gas prices, yes, they are still on the rise. national average for regular up

more than a penny, now at 3.54. just in the past month the price of gas spiked about 25 cents a gallon. the underlying price of oil right now we're down, $95 per barrel. while gas prices are going up, president obama is focused on climate change. at the state of the union next week, the president plans to announce he'll use executive power to curb carbon at power plants. and he made an indication in his inaugural speech. here is some of that. >> we will respond to the threat of climate change knowing that the failure to do so would betray our children and future generations. some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires, crippling drought and more powerful storms. >> all right, now, the white

house says look, nothing it final. a decision whether to use executive action versus legislation that requires congressional approval that may not come until later this year. the point here is, a, climate change legislation is on the table, and b, the president may bypass congress to get what he wants. and may want more taxes on the rich. and keith ellison proposing a plan to closing loopholes, he wants a trillion more from the rich. i spoke to him yesterday, here is some of what he said. >> i think that any american who has benefitted from living in this wonderful country should be happy to make sure that all americans have a ladder of opportunity. i think that is a good thing. >> it's 75%, 75% fair. >> he wants a raft of new taxes on the rich to raise a trillion dollars. the interview became barely contentious, okay?

more in that on my take later. another number for you, 192 it. that would be 192 straight months that the number of people on social security disability increased. we have a record high of claimants, we're about to talk about that. and we have big names that you know making moves on the market this morning, disney, panera bread, chipotle, we'll see how they open up at the bell which is coming up next. twins. i d'. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio.

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>> you know, a couple of hours ago we thought make another run to 14,000 the opening bell this morning, it's not going to happen. it looks like we're going to be down 50 points when the trading session begins. no immediate item of news to account for the turn around in the direction of trading, but we're going to be down 50 points when the opening bell starts to chime. a whole bunch of earnings reports came out and some this morning, only affects the individual stock, it doesn't really affect the overallstate of the market. so, the bell is ringing. the bell has stopped ringing, trading has begun and where are we opening? yes, we're opening to the down side. 5 points, that's the opening trend, the opening trend is down, we'll follow that for you. first up for the individual stocks, panera bread, it's a high scale fast food chain doing very well. that may be a trend here, a comment that people are moving

away from the old line food, taco bell, mcdonald's, and moving to places. >> let's take a look the at the stock, up almost 3% here. when you talk about panera bread, the cafe, bakery style. and mark noonen gave me research file and help me i need to do panera bread and when is your favorite sandwich. >> chicken. >> with pesto. >> this is what i'm talking about, why their same-store sales are on the rise and that's why you're getting numbers and the guidance better than expected and as a result, panera is a winner. >> it will me about chipotle. and relatively high up priced company, go. >> i happen to have it here, cng up 1.5% and now it's up 2%. this is a name that came out after hours yesterday and it's

had incredibly volatile wild swings since the close yesterday into this morning and no one knew which way it would go. >> thanks, nicole. profits down a little at disney. it's a dow stock of course, but rising attendance at the theme parks, apparently boosted the bottom line. told a lot of visitors at the theme parks are foreigners from overseas. take a look at stocks, it's up a buck, 55 on disney right now. the number of people on social security disability, watch out, it hit a new record high for the front of january, almost 9 million people almost receiving disability payments from the the feds and ford, another number for you, 192, that's 192 straight months that the number of people on disability has gone up, that's almost 60 straight years, straight up. and let's bring in star parker, she's the president of cure. star, you're what used to be called a welfare queen.

you reformed. now, here is my question for you this morning. are some people playing the system? claiming disabilities that are hard to catch, like depression? i don't want to be harsh and blame the victims, but i want at the truth here. tell me. >> the truth is the problem with our disability insurance program it's administered by the social security administration so you have the manipulators in washington moving around decimal numbers and next thing you know they're flush with cash because of the payroll taxes and it's a federal program so the states cannot regulate. what begins to happen, within the states you have all of these welfare mentality, call them entitlement mentality folks and look at welfare, disability and count the costs and easier to go to the doctor and get a note for the headaches they get and end up on the disability program. they don't have the same means test that the welfare program has, there's no accountability, that's the problem.

>> you get social security, disability payments for a long, long-- for life, isn't it? very little on hey, you're not suffering from that any longer, get back in the work force? >> because it's not-- it's usually the regulation is on the local level. the states, and the welfare program get an opportunity to make sure that people are not cheating the system. that they really need help, and et cetera. but under the disability program it's a federal program. so the states now get all of this cash, there's no way a they can say, we have to-- we want you to qualify, let's make sure that you're eligible for this. this is not the only program that's run amok. we know that this is happening in the unemployment benefit program. and people now for an extended period of time, all their life if they want to because they say they have a bad back or a bad foot can qualify for this program. >> in the days, excuse me for using the pejorative, welfare queen. did you that, was it easy to

play and game the system? >> it's easy to game the system. in the welfare system all you had to do was get pregnant, if you were not married, didn't work, didn't have money in the bank you qualified. there were means tests, every first of the month you'd get a questionnaire to say do you still qualify. >> star parker, obviously, you're right, but if you do what you're suggesting, you would be

demagogued to death. you would be said that you are harsh, you are a nasty lady, you're trying to blame the victim, you are making people suffer, you're mean, a rotten person and that's what's said about you if you really want reform of these systems period. you know it. >> this is what leadership is about, this is what backbone is about. how many of us that have teenagers know that teenagers think you're hard when you're telling them no as well. these arguments that the left keeps throwing out there about how harsh we are, we can look into what they've done with our programs and not see help at all. matters are getting worse in every inner city and rural communities it's out of control, so someone in washington has to have the leadership abilities to say i don't care what you call me, you're in timeout. we're going in here and reform these because frankly, we're cruel to the poor. this is not helping someone to not find their abilities to it be able to produce something to

allow them to sit on the couch all afternoon because they get a headache and collect disability. >> on a related note, one fast one for you, i want your comment. one lawmaker in tennessee introduced legislation that would cut welfare benefits to parents whose kids are not doing well in the classroom. and tying welfare to performance. and could find their welfare checks cut. what do you say. >> i say hallelujah, at least we could make sure the children do not repeat the behaviors of parents and get a good education. stuart: star parker, thank you. all right, enjoy that super bowl victory, enjoy it in baltimore because tough times are acomein'. cording to a report, it's headed for financial ruin, the reason why, retiree health care benefits. 2 billion dollars worth.

baltimore is the latest municipality to be mired in red ink. more at the top of the hour. now this, the postal service cutting back its plans to-- cutting back, it's cutting back, plans to stop delivering mail on saturdays, but it will continue to deliver packages six days a week. the cuts due to begin in august would mean an annual cost savings of about 2 billion dollars a year, nowhere near enough to stabilize its deep deficit finances, then there's this. japanese airline, ana, it c canceled all dream liners flights. >> there it is, down about 1/4 of a percent, up off the lows and that doesn't bode well for the dreamliner that we feel we waited a lifetime for and now with the issues they've had. they've had to move this-- >> tell me about ralph loren, it's up why. >> and the popularity, clearly, the sales are on the rise and

the margins have widened. the ceo just talked about growth going forward. you can see the stock here is up about 8 1/4%, so, certainly a big win there. >> and that is called a rally. going the other way from the dow which is opened from a near 60 point loss in the early going, we're well away from 14 k as of right now. we want to hear from you on the issues that we've raised, e-mail us at varney@foxbusiness.com. seven early movers, better than expected sales at zynga and that stock is up 6 cents. not much. profit down, 90% at expedia, that's the travel website, but results apparently better than expected, nonetheless, the stock is down a little. the photo sharing website, shutter fly, gives a positive outlook and the margin likes that and higher profits of the game maker, take-two interactive and that's a charles payne and that's up 7%. dow component.

hewlett-packard looking at a breakup of the company. the market likes that one and it's up. organic foods maker, hanes celestial took in less than expected. it's down. better than he expected profits at business support provider, and it's up. look at that, 8%. the dow though now down 50. you know, we are now deep into flu season, aren't we? and i still say there's a lot of hype around this season's flu from doctors and the media. and wouldn't you know it, our favorite medical doctor is here to convince me once again that is flu shot is worth it. >> it works about 50% of the time a flu-- 60% of the time. stuart: 60% of the time, that's it? come on. >> probably this year more than 70 or 80. stuart: probably? come on. >> we won't know for sure until april, but listen, what else do you have. stuart: oh, come on, doctor.

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and you are. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank.

your money needs an ally. >> all right. the market is moderating a little. we were down 60 the opening and now down about 40. as for the price of oil 95 bucks a barrel earlier and we're still at 95 and we're down $1. it's been a good flu season for clorox. shares of that company hit an all-time high. their profits were up because of everybody running out and buying disinfectant wipes to fight the flu. dr. mark siegel is with us. >> well, dickenson up to 3.13 a share it was 1.21 a year ago, stuff for needles and flu shots and things to test for flu, all good things. stuart: okay, look, it's a media scare. it's a hype. this has been over-hyped hasn't it? the media seems to be in league with the medical companies to

make us rush out and get a flu shot and worried stiff about the flu. it's a bust, isn't it? >> i wrote a book about media fear, media hype, but because the media does that, doesn't that that there isn't a kernel of truth this time. you make fun of influenza, but it contributes to 34,000 deaths every year, 34,000 deaths every year from flu or diseases you can get from flu. that's a serious figure. stuart: but you agree with my premise the title of your book is "false alarm, the truth about the epidemic fear" there's a lot of hype in the annual flu scare. you agree. >> totally because the switch goes on and switch goes off. if you're in the spotlight it's on the flu and everybody is buying masks and paraphernalia. and this week there's as much flu as has week.

i've got clorox wipes because i'm worried you didn't get the flu shot and-- >> my problem is the media hype lacks an of credibility for someone like you and people in the medical business because there's hype going on, it proves to be not as bad as everybody thought it was going to be, we've spent a ton of money taking precautions and it's not as bad. next time around you've lost credibility, you have. >> if i came out talking doom and gloomy lose credibility. the centers for disease control is famous for that years ago or the world health organization, millions can die and when it doesn't happen, they lose credibility. the trick is, a nuanced message and they're getting better on that. what do i mean by a nuanced message. you've got to be able to say, it's something to be around about, especially if you're elderly and chronically ill and have an underlying medical condition, it's not nothing, but let's not over hype it. if you give a nuanced message

you retain credibility. >> it reminds me of the weather forecasters who go on endlessly, pack the umbrella, dress warmly, wrap up, it's cold out there. take care. doesn't it remind you of that. >> if you give the cliched messages, no one is listening. i say again and again, you can't get the flu from the flu shot. you know how many people think you can. you can't get it, you bet congestion and a low grade fever, but it's a dead virus, you can't get the flu from it. stuart: a low grade fever, oh, thanks a lot, doctor. >> but you didn't get the flu. stuart: how many of the 34,000 people who will die of the flu. >> related issues, it may not be the flu, it may be other conditions. stuart: there you go, see he? >> no, the flu is contributing to the problem, knocking down your immune system. >> how many of these people are elderly and infirm to start with. how many people who are infirm, young, very, very, very young children. >> fair point. i'm going to give you a medical

internship for that. of the 34,000, over 90% are elderly, but not infirm. >> you're not elderly. stuart: the book out there. excellent doctor. >> it's a problem. stuart: with a straight face, i agree. thank you, doc. in the next hour we're talking more about e-cigarettes and what i'm calling the possible positive effects. could nicotine addiction actually -- what is it? nicotine addiction is not a good thing, i understand that, but i'm going to talk to dr. keith ablow with e-cigarettes and how they deliver nicotine to you. 10:35 this morning, that will be on our air. now, time for your gold report. near 1677 is price right now.

by now you've probably seen the ad and i hate it, but for go daddy, it's a success for the company and the actor. sandra smith, charles payne, they're here, they will reacts. ♪

>> and there was an ad during the super bowl, i didn't like it, many of you did not like it, so much so we're not going to show it again. boy did it work! this actor who got a kiss a supermodel. his career skyrocketed and the company behind the ad that would be go daddy.com added 10,000 new customers on monday alone making it the biggest sales day in the history of the company. charles and sandra are with me. to you, sandra, i hated it, but it was a wild success. >> the fact that you hated it is what made it a success. okay? shock value sells. sex sells. heart warming messages as we saw during the super bowl sold. and shock sells. this shocked you? you've been talking about it, you've been running it on your program. they won. stuart: you're saying that an old guy, out of touch if i'm shocked, it's a success.

>> absolutely. stuart: you're right, you're absolutely right. charles: people would have been shocked by that ad if it was yesterday, a hundred years from now, 200 years ago, i don't care how old or young you are, it was kind of-- the irony, it was repulsive. stuart: i wasn't shocked, i was repulsed by it. charles: maybe we are just that country you know where we slow down and watch car wrecks and maybe that's why people go to nascar and go to hockey games. and cbs said two versions were indecent. but 45 takes. >> 45 takes. >> we'll leave it on that one. >> i'll do a commercial. >> and enjoy that super bowl championship, baltimore, because your city is in deep financial trouble. the latest on the big cities swimming in red ink. plus, mike reagan on the positive vibes coming out of california. are we wrong to doubt what governor moon beam and his

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or should enjoy the success of the ravens while they can. holding the trophy feel good now but soon baltimore, the city, has to cope with financial reality. here is the story. the city like so many others is going broke. in report says baltimore's on the road to financial ruin.

ruling is a few years down the road that you can see it coming. here it comes. baltimore made promises to its retired workers, it cannot keep. retiree health-care costs. baltimore is in maryland, the find anyone looking $100 plus. taxing the rich has not helped illinois. tax the middle class. hold onto your wallets, everyone. look beyond the fawning headlines. economy is in bad shape all thanks to tax and spend. the media may be at the focal point the deficit will be below $1 trillion.

the congressional budget office, d.c.'s been counters' now say the debt will be 77% of gdp by the end of the decade if congress keeps current law's. worsted generation. look at the debt clock, 16, trillion dollars and counting. the same tax increases and spending cuts that rapid drop in the deficit will cost as 1.25% in growth and 1.5 million jobs. last but not least, seven million people will lose their employer based health coverage under obamacare, double the original estimate. let's put a cork in the champagne, brand new from the cb 0. here to talk about this is our company this wednesday morning, baltimore financial ruin, gas prices and cbo this hour. sandra smith is with us, charles payne is here, nicole petallides on the floor of the nyse-listed first i want our take from the

company on these numbers from the cbo. you are first. charles: seven million people will lose their health insurance. this is the latest. you can imagine as this is implemented, more and more businesses fighting a struggling economy, more regulations, more attacks, they opt out and pay the penalty. let it be someone else's problem, the taxpayers' problem. almost 100% from the previous estimate but this will go higher. stuart: that was buried, seven million people will lose their obamacare insurance coverage, that was buried. so were the 1.4% growth rate and the 8% unemployment rate that we will hit this year from the cbo. the headlines, the media wanted to concentrate on all of them. the deficit will be below $1 trillion. there's a good news. let's pick on that. sandra: every media had line focuses on the drop in the deficit that the cbo is talking

about. what we are not talking about is growth. projecting a one.7%, gdp growth in recent quarters versus we were at 2.4% which is not great. before the recession. we are once again a national conversation is not about growing jobs and growing economy in this country, we are focusing on one little statistic that doesn't reflect the united states coming out of this recession. stuart: media is a cheering section for the obama administration. charles: it has gone into overdrive. they were in fourth gear during the election. i thought there would be more neutrality. they have gone into overdrive, it is amazing. stuart: let me check the big board. we are an hour, half an hour into the trading session. we are down a little bit, not much but retreated further from the 14,000 level. let's get to nicole petallides. para --panera are keeping hold of their customers, boosting

profits, the traditional fast-food restaurants are being little left behind. give me the stock this morning. nicole: looking pretty good. rainout it is up 2%, traded as high as 159-59, st. louis, missouri based company, they see same-store sales on a rise. we will see margins improving as well, have given an outlook that has been good news. pncreasing their marketing, customer loyalty program is on the rise and new menu items. stuart: i want to ask charles payne is the winner? would you buy at $166 a share? charles: some subscribers in the stock. march 24, 2010, the country becomes the first major change to automatically put calories on the boards, let people know how much they are in, and stocks are up over 100% and they fought their way through the note, but

diet and say we don't know how many calories are in the food but when you walk in it is a great establishment. stuart: the price is way above what you have a at taco bell, mcdonald's, wendy's. sandra: below chilies or ruby tuesday or any of those restaurants. when you have that tree down affect when people don't want to tip a server or whatever you might be, you get restaurant quality food without being waited on and a lot of people like that. there's no alcohol. charles: has the same ambiance as a whole foods. stuart: no alcohol is a plus? sandra: those who don't want to be in a restaurant but still get restaurant quality food, they are winning because of that. stuart: nicole petallides at ten seconds. nicole: i only need five. i like the idea but i didn't even know that. this muffin this morning, on the top, i don't know how many calories are in it. stuart: how much did you pay? nicole: not sure.

stuart: how much did you pay? nicole: i don't exactly know. stuart: with $5? nicole: it is not the calories. they on point. stuart: thanks very much. back to our new at 10:00 for stuart: did after the city of baltimore celebrated the ravens super bowl championship. a new report says the city is headed for, quote, financial ruin in the next decade. big reason here, retiring health benefits. your take on baltimore jobs. charles: baltimore. used to come on hbo, the wire. i found baltimore was a city in trouble years ago when i joined the air force. i had no idea, it really is bad. we are talking 22% of people in poverty. median come $40,000. the population, everyone --

complete the bust but here is the thing. the mayor is going to use this to outline proposals next week. i could just imagine it will be out of the obama playbook. stuart: what will it be? before more taxes. stuart: the mayor of baltimore will make proposals, she has to make proposals to get out of the mess and you think it will be tax the rich. charles: you are looking at a deficit of $2 billion over the next ten years including infrastructure and retiree health benefits. that is the only playbook they know. sandra: the city of baltimore annual operating budget is $2.2 billion. we are talking $2 billion shortfall over the next ten years. this is reflective of most cities in america. stuart: many cities. and the state of illinois. they are suffering the same problem as illinois which is they made promises to their work force. what are they going to do? i am just waiting for the bailout. if you listen to the politicians in california, they are painting

a rosy picture of the finances of that state. here is state treasurer on monday's "varney and company". >> moving into the black. or short-term internal borrowing is being reduced. economy is picking up -- those are the reasons and to the for the upgrade that occurred by s&p. stuart: joining us is mike reagan, voice of reason from california. you just heard about moving into the black, borrowing less, the economy picking up, that is a rosy picture. you live in california. you have been a commentator many years there. what is your reading? >> if i say one thing, my dad's 100 second birthday today. at this point his second administration, we're growing at 7%, not 1.7%. calif. to hear them talk about the uptick things are looking

great. remember proposition 30 was retroactive back to january of 2012. no one was able to react to that in time and got caught with it. trust me, 2013 will be much better for those of us who are going to figure out what to do about our tax base in 2013 knowing that our taxes are at 13%. to give you an idea i am going to las vegas the first week of april to celebrate my daughter's birthday. we are looking at a condo. stuart: i offered you a room in my house. >> i am thinking about that. how does the weather? stuart: not agree. hold on a second. >> a lot of people looking at condos, there are 60,000, a condo is paid for in one year or two. this is what is going on. then it brings in what is going on with the business community, 17 corporations, and, leaving the state of california, 200

companies in the last week in years leaving the state of california. still going on. stuart: on that note i want you to listen to part of this ad from governor rick perry of taxes. he is trying to get california businesses to move to texas. >> building a business is tough but i rear building a business in california is next to impossible. this is texas governor rick perry and i have a message for california businesses. check out taxes. stuart: here is governor jerry brown's response to that ad and i'm quoting directly. it is not a serious story. he continues it is not a burke. obviously rejecting low rick perry at the but you just told us -- >> you don't finish the sentence. stuart: i'm not going to. it wasn't quite an obscenity. >> that is our governor. stuart: you just give us the number, 17 corporations in a month that are leaving

california so people are responding to governor perry's message. >> the reality is there responding to that message for a long time without the at by governor harry leaving the state of california. people in california to run for office lose and move to california. people in california who run propositions in california try to do something and it loses and they move not to california but texas. this is what is going on. our state legislature goes to texas to find out what we need to do to bring jobs back. they learn what to do and come back and do nothing. we have a two thirds democrat majority in the state assembly and the state senate. they want to unwind proposition 13, raise taxes even more on the people of the state of california. this will become a state where you come to see disneyland and visit the beach because there will be nothing else to do. stuart: fascinating stuff. you are not changing your point of view on the state of california's finances. no matter what bill lockyer says

or governor jerry brown says you say things are bad and it is going to be worse in 2013-14. that sums it up. >> absolutely. stuart: mike reagan, always a pleasure. i hope you see us again real soon. thanks a lot. appreciate it it. businesses are not just leaving california in droves but also fleeing new york. financial capital of the world losing financial companies. later this hour we will talk about wall street businessman who packed up and left new york and went to florida. surprise surprise it is all about taxes. 10:45 this morning here in the studio. game stop way down. why? nicole: competition. this is the story here today. it is also a 15%. today it is down 8.5% because there is going to be a new tax box launch and that will have internet connections. then people will have online games, not necessarily going to

need to go to game stop and buy visible games. that is number one. the other thing is this is an extremely volatile stock and you know this. when you have the heavy flow of and that short, 15, 35% of game stop stock actually held short which makes it extremely volatile. one of the biggest among the s&p 1500 companies. you see the short squeeze going back and forth. stuart: thanks very much. i want to show everybody the stock price on boeing as of right now. we got a statement from the ntsb that any resolution of the investigation of the battery problem is weeks away. no effect on the stock. the stock is a little. a couple days ago when the story was beginning to break we were down $73 a share. now boeing as at 76. one story that has a lot of people talking, the woman who mouthed off to a judge and paid

the price. our judge weighs in on this next. look at this. >> did you say that? you did say that. 30 days in county jail. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn fures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.

stuart: of federal reserve admits its internal web site has been briefly act. the fed says no critical functions of the central bank were affected.

profits are down at disney but a rise in the theme parks, strong lineup of films that helped the bottom line. stock is up $54 a share. ralph lauren report profits of 37% in the holiday season. it is up 7%. the postal service announced plans to stop delivering mail saturday's. this will save the postal service $2 billion a year. it all starts in august. just a drop in the bucket. a miami team gives the judge the bird, we have our and justice will pass judgment on the judge. did judge go overboard in giving the young lady 30 extra days? we will find out in 90 seconds. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet...

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stuart: a lot of people taking sides over this, a teenager, got herself into trouble in florida at a drug possession hearing. >> bid by. >> adios. >> come back, come back, come back. it will be 10,000. >> are you serious? >> i am serious.

[bleep] >> come back again. >> i believe i heard you saying -- i believe -- did you say that to me? did you say that? >> yes. >> you did say is that? >> i find you in contempt, 30 days in county jail. stuart: judge andrew napolitano is here. i will take you on on this one. what is your reaction to the judge? judge napolitano: i think the judge grossly overreacted. i think the judge brought on her behavior and violated the procedures. here is the setting. use innocent until proven guilty, charged with illegal possession of a prescription drug, she has no priors meaning ordinary bail in such a case you heard him use the phrase released on her own recognizance, promise to return. because he didn't like her he

charged her with $5,000. because she behave rudely--to $10,000. this is not a fine. this is bail, money she has to post to get out of jail. she is unlikely to have that money. if someone misbehaved in your courtroom, you have to display some tolerance. if you are angry at the person like you are angry with me now, you cannot sentence or punish a person in a anger because that is not a right or fair mental framework. here is the rule on contempt. if you tell somebody not to do something and they do it you can sentence them for contempt if they do it spontaneously on their own and you are offended by you send them to another judge for sentencing because you are the victim. the victim can't be the judge. stuart: here is my point of view. a court of law must be treated with absolute respect. you must behave respectfully toward the judge. saying adios is showing

contempt. that is showing the judge -- judge napolitano: wait a second. >> he brings her up and says $5,000 bail, $10,000 bail. shea uses the f bomb. he brings her back and quite rightly put her in jail 30 days. you show respect for a judge. judge napolitano: the reason it is not right to put her in jail is you can only incarcerate someone when they defy you. when you don't -- don't do x or don't do that and then they do, short of that, you don't have the authority to put her in jail. if he thinks he should go to jail, he has to send her to another judge because he is angry and is the victim. as far as the adios is, not she said goodbye in spanish.

that is preposterous. that is unethical, a violation of judicial demeanor. stuart: when your ridiculous on this. outrageous. you treat a court with respect. you are a former judge. judge napolitano: you have to have some leeway. this is a first appearance, this is a court of minor -- stuart: teach her a lesson. [talking over each other] stuart: let the message ago out loud and clear you will treat my courtroom with respect. judge napolitano: stuart varney never a judge in my court. stuart: you can't get away with that. the basic disagreement between us, you show respect -- [talking over each other] stuart: i am american. you should show respect for the court, respect for the judge. judge napolitano: respect means you can have a little bit of humor. if the judge is being humorous there's nothing against the defendant being humorous as well. this guy was being humorous and she tried to humor him by saying goodbye in spanish. act itself should not be the

basis for punishment. sandra: appears the defendant was being mocked by the judge. he asked how much is all that jewelery you are wearing worth before he doubled the bail which i have a problem with because they didn't have anything to do with her illegal possession of drugs. judge napolitano: the purpose of bail is to guarantee her return, not to punish her. stuart: i think you lost. let's ask our viewers. how many people side with the judge who says the judge in court in miami went overboard and how many people side with me to say you must in all locations -- judge napolitano: how many people want that character as your judge and how many people like me? stuart: that is the wrong question. how many of our viewers want you in the court room or that judge in the courtroom when judging people who have broken the law? judge napolitano: skated better than i could. stuart: i thought it too. , on, way in. i want a conversation on this. no time for that.

[talking over each other] stuart: $1 trillion in new taxes is one congressman's plan to fix the budget and he wants to take it from the rich. my take on this interview with congressman keith ellison is next. >> any american who has benefited from living in this wonderful country should make sure all americans have a ladder of opportunity. that is a good thing. judge napolitano: it is 75%.

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>> these programs need to be overhauled and that is what republicans are saying, let's cut spending, we're spending a billion dollars from a, who should be administering them, >> is right. that was star parker. responding to 192 straight months with a number of people on social security disability gone straight up. judge andrew napolitano held over from a previous popular segment. your comments. judge napolitano: i think i'm winning. >> it is unconstitutional, nothing in the constitution permits the government to tax

you to give money to someone else. the system is absolutely gameable. too easy to qualified. disability, full time payment the rest of your life and the government gives away too much money too easily. stuart: a fine performance, thank you very much. judge napolitano: keith ellison is a democrat from minnesota. i held a lengthy and contentious interview yesterday. introduced a bill to raise $1 trillion in extra tax revenue. he wants to take the money from successful people. here is my take. congressman allison is an extremist. his bill is an extreme version of president obama's tax the rich policy. this is redistribution writ very large. bear in mind taxes on income, profits, dividends and interest, has all gone up as of

january 1st. congressman ellison is floating a whole raft of extra taxes. but state taxes, cut deductions for business expenses, end tax breaks for all subchapter corporations, millions of small businesses, tax yachts, private jets, capping any and all deductions like charity or mortgages. you get a break, stop option, it is gone. the list goes on and on. he wants $1 trillion and you wants it now. i asked what is the government's fair share compared to what? phil mickelson's 63% rate is perfectly fair if you compare it to a starving child. that is interesting. he is comparing apples and oranges, ringing, with welfare and using a highly charged emotional argument to make his case. that is exactly what president obama has done. the poor are suffering so the rich should pay more. unfortunately we spend so much

time debating fairness that we didn't have time, a trillion dollar tax on the economy. it would be devastating for everyone. i don't think congressman ellison cares. priority of the left is reshaping society. you have got it, we want it. the elson bill is highly unlikely to pass, but the fact that it has been introduced tells a lot about the mindset of the day's democrats. i'm a conservative investor.

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stuart: notes what you pay at the pump these days? of course you do. gas prices rising. in the past month, the price of gas spiked by a quarter, in a month. the national average price for regular, up a penny overnight at 3.54. based on the price for oil at 95 bucks a barrel. okay. sandra, you're a former oil commodities trader. where are we going with gas prices, real fast? >> pure and simple, the federal reserve to thank for the higher gasoline and oil prices, otherwise we would be lower. the money printing, low interest rate environment drives down the value of the u.s. dollar, and all the commode di -- commode -- commodities, gasoline and oil,

and everything goes up. stuart: thank you. the federal government not the only one trying to get in on legal marijuana. unions trying to give it a try, not give it a try, but the legalization a try, okay? three dispensaries in los angeles sapped by the nation's largest retail union, and another 49 in the city plan to enter the labor agreement by the end of this year. okay? that was just a news alert. no comment required, ladies and gentlemen. e-cigarettes, well, they are a booming industry, and, yesterday, we spoke to the chief executive of a company that makes those electronic cigarettes. he tried one on the set yesterday. well, today, we have with us dr. keith ablow. welcome to the program. >> my pleasure, thanks for having me. stuart: you're welcome. these cigarettes delivers nicotine directly to you without the smell and tar. where do you stand on it >> >> here's where. i had experience with the

cigarettes. they are in the a bad idea. frankly, in terms of the things i use to help people stop smokes, these seem to work the best. stuart: it's a tool for getting people off tobacco? can to be -- it can be, and, look, nicotine, there's reason people flock to nicotine for increased energy, focus, and can has antidepressant effects, but you don't want to smoke two packs a day for cancer, heart disease, and the rest. e-cig represents are good in imsimulating the smoking experience, but they are not that good that people stay on them, i found, forever. it's a great bridge for people. it simulates the smoking experience. stuart: nicotine is universally condemned. it is so bad, but you said it aids focus, attention on something, energy, combats depression. there's something good to be said about nicotine? >> most things in life have a

dark and a light side. good and bad, and so here's the thing, no, nicotine itself like caffeine, it can be useful to people. it effects neurotransmitters which is why people flock to cigarettes as well as the hand motion with the fact it's focusing for them, standing off, doing nothing but smoking the cigarette. it can be a decreased descries ma noser for people. i think this simulates that, and it does it in a much less dangerous fashion. for instance, the cigarettes you mentioned, that company that was here yesterday, removes 400 carcinogens not in their products that are in cigarettes. stuart: really? okay. >> i don't feel bad telling the patients, and i do it routinely now, use the e-cigarettes because i don't want you to smoke. i don't think you can cold

turkey stop nicotine, but it's a bridge. you will not love them, but you'll like them. stuart: what do you say to someone who says, you know, the nicotine's not bad stuff, i focus, i have energy, and i feel good. i never smoked in my life, but i'm going to take up an e-cigarette because i like nicotine. what do you say to them? >> there may be belter choices, and we should talk about that, but you're not crazy. if you found that nicotine in measured quantities and not in increasing quantities help you focus, how can i write you a prescription for attar roll or ritalin. stuart: the drug i use is coffee. >> me too. caffeine. stuart: it's a drug sks right? >> absolutely. people rely on that. they used to condemn it and

coffee, and now there's all p kinds of health effects. sometimes there's wisdom to people saying, you know what? i think i need, i feel ten times better with that e-cigarette. okay. i don't think it's going to kill you, and it might just make you more productive and less dprezzed, and if it does, it's cheaper. stuart: in the last two days, we gave significant advertising time to e-cigarettes. >> they are expensive. >> you deserve some samples. >> there's a significant cost involved here. that's a big deterrent with recigarettes. stuart: no. it's $9.95 and it's the equivalent of two packs of cigarettes. >> cigarettes attack the industry because they don't want to see it happen. stuart: they are buying into it. >> they should. that's a good thing. i wondered why don't they sell single cigarettes. >> you're not no my

neighborhood. >> who is behind the conspiracy to package 20 cigarettes in one package against the rational thing to say, of course, we sell singles. maybe people would stop. stuart: doctor keith, thank you very much indeed. >> thank you. stuart: could it be financial businesses leaving new york? the financial capital of the planet. coming up next, a man who took his company from new york to florida. now, why would he do that? oh, why indeed. next. [ shapiro ] at legalzoom, you can take care of virtually

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stuart: the ntsb the results of the investigation is probably still weeks away. this is on the same day that japan's airways, ana, canceled all dreamliner flights through the end of this month. now, check out the stock price of gain stock. big video retailer, actually, one of thee biggest. it took a hit this morning after reports that the new xbox requires an internet connection. this would make online games much more accessible. investors don't like that for the game stop, and it's down 7%. the iconic iron from monopoly out after the vote on the facebook page, they decided to rid of the iron. no longer there. hasbro announced this morning they replace it with the cat.

a big change for the popular ai we'll will be back so n taking advair may have a higher chance of pneumonia. advair may increase your risk of osteoporosis and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking advair. if you're still having difficulty breathing, ask your doctor if including advair could help improve your lung function. get your first full prescription free and save on refills at advaircopd.com.

a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive canell you exactly where it is, what it's carryg, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what the point of talking if you don't have something important to say? ♪ stuart: ralph lauren, a big winner, nicole? >> still a big winner, it is stuart. the stock up seven and a quarter percent right now for polo ralph lauren, beating the street with a quarter. the outlook is stellar. the cfo's talking about rising revenues, and that accelerating going forward so good news. stuart: yes, indeed.

176. there's a price for you. all right, nicole. the next guest took some of the business from new york city, the financial capital of the world, to florida because his clients headed that way for the same reason. that would be taxation. joining us now is falia from the apex funds services company. welcome to the program, good to have you. >> good morning, sir, thank you very much for having me on the show. stuart: englishman? >> no, an irishman. stuart: they didn't tell me that. you took the financial business, took it out of new york, went to florida because of taxation. can you give me some idea of maybe how much you saved because you became a tax refugee? >> right. that's a very good question, and from a personal point of view, there has been savings with the income tax point that florida affords you. i like to look at what we're essentially seeing in florida

now with the clients of investment managers who are relocated themselves from other states throughout the u.s. to florida because essentially, they are finding that the zero income tax rate is an attractive proposition, and to the points you talked about already in other states where they are looking to increase taxes. stuart: let me jump in for a sec, your clients, the people who you service that are part of your company, okay, they are fund managers; right? they come from all over the country, and they are going to florida? they come from all over the country, they are going to florida. these are people with significant money, i take it >> >> yeah, essentially. we are seeing a strong migration, especially over the last couple years of fund managers looking to find lower cost jurisdictions to run the business. essentially, florida had stepped up the mark by reducing the income tax and making florida very attractive place to relocate there, their business to do business. what we are seeing is a lot of

european base managers looking to florida to essentially relocate the headquarters, especially for the north american clients and for the latin american clients. we do a lot of businesses in latin america targeting the huge fund community, and high net worth individuals, and, essentially, they all start to view miami as the capitol of latin america. there's migration from latin america, and north american states, and also, then, from europe. from our stand point, as we continue to grow worldwide, we have 28 offices globally. we look after 24 billion dollars worth of assets, and logically, the next jurisdiction of choice for us was essentially florida because we can see this large influx of our client base moving there purely on the basis of the zero income tax, the very strong sort of business environment that has been created here the last couple of years, and i suppose in addition to that, there is also the lifestyle that

brings a huge big sort of play into the equation for the clients. stuart: a lot of english people like florida because it's accessible and the sun is good. there's one advantage, which i think you missed out, make sure i'm right on this. there's no estate tax, state estate tax in florida, is there? >> when you say "state tax" as in residential taxes -- stuart: no, when you pass away. there's no estate state tax on your estate. when you pass away, you leave your money and house and the rest of it, it's not taxed at the state level in florida; is that correct? >> it's a good question. i'm not too sure to pass on that, but i can look into it. we have not ventured that far yet into that end of it. stuart: another selling point there, pleef -- believe me, it is. appreciate the time. >> no problem at all, thank you so much. stuart: we asked you to weigh

in, and you did. who was right about the florida judge losing his temper, me or the judge? we'll have an answer for you in a moment. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing. fand you wouldn't haveme mit any other way.e. but your erectile dysfunction - you know, at could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis.

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♪ stuart: we asked you to weigh in

on the debate with the judge napiltano about the judge in florida who gave a harsher penalty for flipping him off. amelia agreed with me, i department see the law the judge referred to, and contempt of court is a law and show broke it. howard says, stuart, you are correct. the defendant showed contempt multiple times, total disrespect, and lacked any inkling of the seriousness of the charges. it is not a joke. well done, everyone. however, not everybody agrees with me. listen to this from rick taking the other side, "as much as the girl needs a hickory switch and bar of soap for the mouth, the judge is right. the law is the law, and a judge, above all, is expected to uphold and respect it to the letter." we have jeff, "i feel that judge was ridiculous. he should have said no more than just watch it. if he didn't like her flip comment, i think he abused the authority."

follow us on facebook, but, first to charles, don't waffle, no middle of the road, was i right or right? >> you were wrng. that poor judge was a jerk, a real jerk, undermind the profession, interacts with young people in this sorts of a setting, just seemed like a little kid. he had no emotional intelligence. he had none of it, zero. stuart: the girl walks into the court, charged with drug possession, like some kind of a joke, admonishes, raises her bail, flips him the bird, and gives her 30 days in jail. >> first of all, it's a prescription drug she didn't have a prescription for. stuart: it's an abused drug. >> with the utmost respect, sir, i disagree with you. i do agree with charles, and i think the judge, he had it out for her. how much is that jewelry you're wearing cost, you know, he was picking op her, and he should have been punishing her for the

charges she was facing at that moment. stuart: nonsense. if you don't behave in court -- >> he was halfway out the door. stuart: abusing the authority as she was walking out and did it twice or three times. i'm right. the highlight reel is next. all stations come over to mission a for a final go. this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track

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stuart: we have a highlight reel about the lousy economy. roll it. do not be fooled by the headlines. the economy is in bad shape. >> they want to raise taxes even more on the people in california. >> , check out texas. stuart: baltimore is on the road to financial ruin. charles: